Million Dollar Houses | 3 Tips
If you are a new homeowner, saving enough money for a down payment and closing costs is probably one of the biggest financial hurdles you have ever overcome. Ok, so you may not go for the million dollar house right away tho you’ll soon learn that there are many financial challenges associated with homeownership. In some cases, there are expenses you could not anticipate or plan for, so it’s important to be flexible. Here are three tips to handle the expenses associated with homeownership.
1. Maintain a home repair fund
You probably imagined that you would have to spend money to maintain your home over the years, but you might be surprised by just how much it costs. Studies show that a typical homeowner spends 1% to 4% of the home’s value for repairs and maintenance on an annual basis. This can amount to thousands of dollars, so it’s important to make sure you are prepared with a decent amount of cash reserve.
2. Remember that property taxes fluctuate
Most buyers plan to pay taxes based on the amount the previous owner was paying, but property taxes typically increase over time. In some cases, an assessment can cause an instant increase in taxes. Make sure to include some cushion in your budget to account for changes. Oceanfront homes for sale may sound appealing but consider the taxes and insurance you may be required to pay on a yearly basis.
3. Develop a new budget.
Homeownership is more complicated than a mortgage payment. You will also have to account for things like taxes, maintenance, repairs, lawn care, insurance and utilities. It may take a few months to determine how your new home’s utility costs will differ from the space you previously rented. Be sure to leave extra space in your budget for the new costs you aren’t accustomed to. Gated communities also tend to have higher association costs, but the benefits of security, safety, and the amenities are what you pay for.
If you would like to learn more tips about million dollar home purchasing or interested in buying or selling your dream home contact Katy and Chuck Luciano at 561-706-7144 or fill the short form below.